Cash currency market of Belarus went in the red

In Belarus, in June for the first time this year buying foreign currency in cash exceeded its sales.

According to the National Bank, in June, the demand for cash currency grew by 20.6% to $545.3 million, the supply declined by 8.3% to $527.9 million.

As a result, the net purchase of foreign currency in cash from the population amounted to $17.4 million. We remind, in May, net sales totaled $123.5 million, in April - $210.3 million, in March - $126.7 million, in February - $194 million, in January - $214.3 million.

In addition, in June, on a net basis people bought non-cash foreign currency of $93.3 million (including the conversion of ruble-denominated deposits in foreign currency). The volume of purchases of non-cash foreign currency amounted to $115.9 million, sales - $22.6 million

Thus, the total net purchase (cash and non-cash currency) amounted to $110.7 million in June.

The sharp rise in demand for currency in June was caused by several factors: a small panic provoked by the currency rates' game of the National Bank of Belarus at the time of outflow of deposits of non-residents, the reduction of the refinancing rate and, respectively, the yield of ruble deposits, the beginning of holidays period. Last but not the least role played the increase in salaries by administrative methods, initiated in May.